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I'M Onyi Silmon

My purpose as a luxury real estate agent is to help you build a legacy which speaks to who are you.

By inspiring you to live a life where there are no limits.

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The Brutally Honest Reasons You Should Buy a Home When You're A Single Woman

Published November 7th, 2019 by The Silmon Group

Can I ask you a question? Do you believe buying a home is only for couples? I would say that it is not. Now you might think I’m saying that based on the fact that I am a real estate agent. But that couldn’t be further from the truth. 

Moreover, if I am seeking to persuade a single female to invest in one of the most costly expenses of their lives. I better come up with some really good reasons right? Well, sit back with get a glass of wine while I make my case. 

After all, you take on the world in so many areas of your life. Don’t wait until marriage to take on homeownership. 

Home Ownership Protects You Against inflation 

There is a saying that all wealth starts with real estate. The numbers don’t lie!  Ninety percent of millionaires invest in real estate to create wealth. One of the main reasons for this is that housing is one of the only ways to protect your money from inflation. 

Let’s say today you buy a home for $250,000 and shortly after inflation starts to occur. Eighty dollars for the grocery store does not stretch as it did in the past. That gas station run for your car that used to cost $25 to fill in now leaves your car still thirsty afterward. 

This is what inflation does to your pockets. If you bought a home  with a mortgage payment of  $2000, it will not change. Essentially, you are paying the bank with money that is worth less than $2000 and using it to create equity! There is nowhere else you are going to get that deal! You certainly don’t get that paying rent, in fact I can almost guarantee your rent payment will be going  up.

Another fact to take into account is that your home is considered a commodity and if chosen properly it would still appreciate in value during this time! So, in theory, your home is more expensive.

Got Culturally Ties Then This Is How You Build Wealth.

As a Nigerian I know that many single women with a culture similar to mine, the idea of leaving your home before you are married is  considered  too “Americanized.” No matter how much money you make you’re  expected to live at home with your parents. Want to know how you can stay with mom and dad so they don’t have a heart attack and still create a mighty nesting egg for yourself? Three words: real estate investing.

You are the perfect candidate for it! Investing will put you in a much better position when you eventually move out than allowing your money to sit in the bank with little to no return.

The best way to invest is to find a rental property in a developing area where there is an increase in population and a trend of young professionals buying a property.  Next leverage the savings you have to buy a property and arrange for tenants to pay the mortgage. This way you are still building your wealth when you are ready to make the transition to move out. 

When you buy in up and coming areas choose properties that need work because they are less expensive. Getting the necessary help to get the home ready for the rental market in a cost-efficient manner will play a part in your profits. 

However, there is a caveat to ensure that you create a positive cash flow you must ensure that your expenses (mortgage payment, taxes, property management fees, insurance, maintenance, and property taxes) do not exceed your monthly cash flow. 

Once you accomplish consistent positive cash flow through your tenant’s mortgage you can create wealth in a conservative manner. This isn't a get rich quick strategy! Furthermore, because your cash flow is based on your calculations of expenses vs cash flow fluctuations in the market won’t have much affect on your profits. 

Imagine if you take this positive cash flow and place it in a low-risk investment product that yielded a small return. This compounded over the years while living with your family. How much do you think you would be able to put down on your first home or even better leverage it to buy another investment property and your first home!

Buying A Home Is Daunting 

I certainly understand the trepidation into entering into one of the largest purchases anyone will make in their lives. It’s scary to buy a home alone. I get it but it doesn’t have to be.

First of all, whether you are buying a home alone or a spouse, it's imperative to have an excellent realtor on your side to guide you and protect your interest.

Let me tell you something, an agent should never place their interests above your own. In fact, our industry believes this so fervently that they fine and/or even remove the license of agents who don’t abide by this principle. If  you feel you have been bamboozled by your agent don't under any circumstances take it lying down.

If your agent is not 100% honest with you report them to TREC. Yep, I said it.  As an agent I want all the agents who are out for money rather than their clients to be out of business because they make it that much harder for the rest of us. 

Having said that, how can you tell if your agent has your best interest at heart? Tell them your goals whether it is to buy a rental property or to buy your first condo/home. An agent should tell you how best to accomplish these goals and answer any and all questions you have. If they can’t do this then keep looking.

Buying real estate can be stressful. I do not in any way want to paint an unrealistic picture but it doesn’t need to be daunting, In fact with the right agent you can feel empowered.

 Avoid Being House Poor

While buying a  home will most likely cost you less than your current rental payment. That doesn’t not mean you go out and purchase a home that is as much as your rental payment. Because buying a home is much more than just the mortgage payment. 

Remember at the beginning, I talked about the expenses of owning a rental property. Let’s break it up so you can figure out for yourself just how much of your income you can comfortably put into a home. Because no one wants to be house poor!

  • Mortgage payment

This is made of four parts named PITI (principal, interest, taxes, and insurance) your principal is pretty much set with the price of your home. Then there is interest associated with your loan. Make sure that you and your agent do everything possible to ensure that you don’t pay a penny more in interest than you have to.

Taxes are what the government assessees as a welcome home present to the neighborhood! No matter how you pay for your home you will always pay taxes.

 Lastly is the homeowner’s insurance premium. For homeowners’ insurance, my advice to you is to shop around. Not doing so could cost you.

  • PMI

Private mortgage insurance depending on how much you put down on your home the bank will insist that you protect their money just in case you default on the loan. PMI goes away if you pay twenty percent down on your home! Which is extra savings for you! 

  • Homeowners Association Fees

It is highly likely that no matter where you move you will pay  fees to upkeep community facilities and services within your residential community. This is something to consider.  The scary thing is that HOA’s have the ability to place a lien on your house and sell it to collect their fees if you do not pay.

  • Maintenance

This is what scares a lot of first-time homeowners. You can mitigate this cost by paying for home warranty which is an insurance program that will fix items for you when they break down. It’s important to shop around for the best home warranty program and to make sure to read the contract so there is no misunderstanding when it comes time to collect. 

  • Property Management Fees

This only applies if you are renting out your property. You should take this into account before you start shopping for a home. While many people who own rental property choose not to use a property management company. I don’t generally recommend this unless you are extremely handy yourself. Even so, I would make the argument that your time is much more valuable to you than any amount of money you save from not hiring a management company.

Homeownership comes in many forms and as such is not exclusive for those who are married. Don't buy into the limiting mindset that because you are single you can’t buy a home. 

Take an honest look at your finances and ask yourself if you were to put some money aside and buy a home how much further along would that put you into reaching your goals in the long term.

 The majority of single women should stop renting and start owning to build the type of wealth that will benefit them for years to come.

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